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Dealer WP-Consumer Reports Update - Goodman Manufacturing

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<strong>Dealer</strong> White Paper: <strong>Consumer</strong> <strong>Reports</strong>, AC Brands Survey, May 2012<br />

JUDGED, NOT TESTED: CONSUMER REPORTS ® GOT IT WRONG<br />

<strong>Goodman</strong> <strong>Manufacturing</strong> Company, L.P. • 5151 San Felipe, Suite 500 • Houston, TX 77056<br />

Main: 713.861.2500 • www.goodmanmfg.com<br />

April 10, 2012<br />

If anyone is qualified to judge the reliability of a central air conditioning or heat pump unit, it is the<br />

thousands of HVAC dealers and installers across the nation. HVAC dealers know best when it comes to<br />

making recommendations to homeowners and most HVAC dealers believe in the <strong>Goodman</strong> ® brand to<br />

deliver value and reliable comfort to their customers. With some of the industry’s best limited product<br />

warranties 1 , units filled with features at an attractive price point, and millions of <strong>Goodman</strong> ® brand<br />

systems installed over the years, it’s no wonder why.<br />

<strong>Consumer</strong> <strong>Reports</strong> ® magazine states on its website that it would be impractical for them to provide<br />

brand and model ratings of central air conditioning systems due to the large number of variables<br />

(installation, home size, ductwork, etc.). So instead of talking to the most knowledgeable people (HVAC<br />

<strong>Dealer</strong>s), they instead surveyed some of their readers.<br />

That’s why we believe the May 2012 issue of <strong>Consumer</strong> <strong>Reports</strong> magazine got it wrong when they rated<br />

the <strong>Goodman</strong> brand as less reliable than other brands – based solely on some of their readers’ views,<br />

not the laboratory or field testing the magazine is known for. In fact, a few years ago <strong>Goodman</strong> offered<br />

to provide the editors of <strong>Consumer</strong> <strong>Reports</strong> with the facilities to create an independent HVAC testing<br />

facility. Curiously, they turned us down. Instead, when it comes to split HVAC systems, <strong>Consumer</strong><br />

<strong>Reports</strong> relies on sending long surveys exclusively to their readers who have agreed to complete a<br />

survey regarding a wide variety of topics including central air conditioners and heat pump products.<br />

AT GOODMAN, WE BELIEVE IN TESTING.<br />

In fact, we test each <strong>Goodman</strong> brand product three times, including an actual run test, before it leaves<br />

the assembly line. <strong>Goodman</strong>’s 10-­‐Year Unit Replacement Limited Warranty, the Lifetime Compressor<br />

Limited Warranty, and a 10-­‐Year Parts Limited Warranty 2 (on select products) give homeowners peace<br />

of mind. The <strong>Goodman</strong> brand provides strong limited product warranty coverage for a reason. We build<br />

our products to provide lasting performance. Thousands of the nation’s HVAC dealers are confident that<br />

the <strong>Goodman</strong> brand product they install will effectively satisfy and maintain a homeowner’s indoor<br />

comfort. This confidence in <strong>Goodman</strong>’s products has resulted in a significant market share gain of over<br />

five points during the period reviewed in the survey. 3<br />

<strong>Goodman</strong> brand air conditioning and heat pump units are sold by more dealers than any other brand in<br />

the industry. 4 There’s a reason why. <strong>Dealer</strong>s are confident that when they install <strong>Goodman</strong> brand<br />

products, their customers will be satisfied. Why would thousands of trusted dealers have it any other way?<br />

1 Complete warranty information for <strong>Goodman</strong>® brand products is available at www.goodmanmfg.com or from a local dealer.<br />

2 Complete warranty details are available from your local dealer or at www.goodmanmfg.com. To receive the 10-­‐Year Unit Replacement<br />

Limited Warranty, the Lifetime Compressor Limited Warranty (good for as long as you own your home) and 10-­‐Year Parts Limited Warranty,<br />

online registration must be completed within 60 days of installation. Online registration is not required in California or Quebec.<br />

3 AHRI <strong>Reports</strong><br />

4 2011 Clear Seas Research


April 10, 2012<br />

Page 2 of 3<br />

<strong>Goodman</strong> takes great pride in our manufacturing quality. In fact, we insist on it. The <strong>Goodman</strong> brand<br />

product line is assembled in facilities that are ISO 9001-­‐certified, which is accepted worldwide as the<br />

independent standard for quality manufacturing and management processes. We also take pride in our<br />

ability to work with dealers and homeowners to resolve any complaints. It’s why the <strong>Goodman</strong> brand<br />

was awarded the Better Business Bureau’s ® highest rating. The A+ rating is based on 16 performance<br />

factors that reflect <strong>Goodman</strong>’s ability to work with homeowners to quickly resolve questions or<br />

concerns regarding the entire line of <strong>Goodman</strong> heating and cooling products.<br />

Quality, in fact, is an integral part of the <strong>Goodman</strong> brand mission. From initial assembly to final<br />

installation, the <strong>Goodman</strong> brand is working diligently to elevate homeowner perceptions of the entire<br />

HVAC industry. One of our quality commitments is to actively support and promote NATE certification,<br />

a symbol recognized by more and more homeowners as the mark of technician excellence.<br />

The <strong>Goodman</strong> brand has been recognized as an innovator, the industry’s heat transfer experts. Our<br />

engineers and technicians developed high-­‐performance products like the 5mm SmartCoil condenser<br />

coil that greatly increase heat transfer capability in units using R-­‐410A refrigerant, which continues to be<br />

the industry’s most advanced and efficient copper tube and aluminum fin combination.<br />

In 2009, the <strong>Goodman</strong> brand launched a completely redesigned heat pump, with standard features that<br />

have made it an increasingly popular choice for homeowners.<br />

All-­‐aluminum <strong>Goodman</strong> brand evaporator coils introduced a single-­‐metal solution to a leading cause of<br />

premature copper coil failures. These durable coils have been rigorously tested in a reliability laboratory<br />

and field-­‐tested, ensuring performance equal to – even exceeding – the performance of the <strong>Goodman</strong><br />

brand copper tube and aluminum fin evaporator coils.<br />

The <strong>Goodman</strong> brand offers simplified installation of previously complex, high-­‐efficiency systems with its<br />

ComfortNet Communicating Control, which a dealer can install using just four wires.<br />

At <strong>Goodman</strong> we let the market be our judge: the millions and millions of installed <strong>Goodman</strong> brand air<br />

conditioners and heat pumps that effectively keep homeowners cool and comfortable plus America’s<br />

HVAC dealers whose loyalty we have earned.<br />

QUESTIONS & ANSWERS<br />

Q: Doesn’t <strong>Consumer</strong> <strong>Reports</strong>® rigorously test products before making recommendations?<br />

A: In the case of central HVAC systems, <strong>Consumer</strong> <strong>Reports</strong>® does not use scientific testing. Instead, the<br />

magazine relies on reader opinions given as part of a lengthy survey covering numerous household-­‐<br />

related items. The survey is sent to the publication’s readers who have responded that they would<br />

be willing to partake in a survey covering a wide array of products and services.<br />

Q: Did <strong>Consumer</strong> <strong>Reports</strong> provide analysis on what failed or was repaired?<br />

A: <strong>Dealer</strong>s know a host of things can contribute to poor cooling or heating, from leaky ductwork to<br />

poorly insulated home construction, to units not properly matched to a home’s size. <strong>Consumer</strong><br />

<strong>Reports</strong> does not take these factors into account when evaluating reader opinion. There is no way to<br />

know if readers were complaining about the units themselves, or some other factor that had<br />

nothing to do with the air conditioner or heat pump itself.<br />

Q: But isn’t <strong>Consumer</strong> <strong>Reports</strong> considered reliable?<br />

A: <strong>Consumer</strong> <strong>Reports</strong> has provided a great service to consumers. But sometimes they get it wrong. Take<br />

the recent case of the 2012 and 2011 Honda Civic.<br />

<strong>Goodman</strong> <strong>Manufacturing</strong> Company, L.P. • 5151 San Felipe, Suite 500 • Houston, TX 77056<br />

Main: 713.861.2500 • www.goodmanmfg.com


April 10, 2012<br />

Page 3 of 3<br />

For the past two years, the Honda Civic LX has been dropped from <strong>Consumer</strong> <strong>Reports</strong>’<br />

recommended small car list. Yet, the Civic maintains some of the industry’s best resale<br />

values. While CR issued a scathing review the Honda Civic (August 2011), that same car<br />

earned top ratings from the Insurance Institute for Highway Safety. One California<br />

dealer responded to the report saying he is having “zero complaints” from customers,<br />

who are snatching 2012 Civics up so fast that “we can’t keep them in stock.” When<br />

asked his opinion of the <strong>Consumer</strong> <strong>Reports</strong>’ analysis, this dealer told Auto Remarketing<br />

“It’s unbelievable, frankly.” -­‐ Auto Remarketing 8/3/11<br />

And then there is the <strong>Consumer</strong> <strong>Reports</strong> review of the iPhone 4 (July 2010).<br />

Despite CR’s “not recommended” rating, the iPhone 4 went on to become the biggest<br />

selling smart phone in the United States. – PC World 8/5/10<br />

Q: <strong>Consumer</strong> <strong>Reports</strong> mentions repair costs in their report. What is the significance?<br />

A: It’s hard to tell. If a <strong>Goodman</strong> brand compressor covered by a registered limited warranty happened<br />

to fail, the only thing a homeowner would pay for is the labor. <strong>Goodman</strong> limited warranties cover<br />

the most expensive part of the HVAC system.<br />

Q: What should dealers tell homeowners who might be concerned by the <strong>Consumer</strong> Report’s article?<br />

A: Tell your customers the simple truth about the <strong>Goodman</strong> brand. That <strong>Goodman</strong> brand air<br />

conditioners and heat pumps are assembled in Texas and Tennessee, not outside the United States,<br />

under strict quality standards and certifications. That these products are scrutinized for quality by<br />

rigorous testing that <strong>Goodman</strong> brand’s limited warranty coverage provides peace of mind. And that<br />

<strong>Goodman</strong> brand air conditioning and heat pump units are sold by more dealers than any other<br />

brand in the HVAC industry.<br />

<strong>Goodman</strong> <strong>Manufacturing</strong> Company, L.P. • 5151 San Felipe, Suite 500 • Houston, TX 77056<br />

Main: 713.861.2500 • www.goodmanmfg.com

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